(MENAFN- Market Press Release) IFC - International Finance Corporation, the Affordable Housing Institute, Sonit and AIAG to present on affordable housing solutions for the Guinean market. There exist many opportunities for investment as the Guinean Government and private sector have begun working with banks to boost access to housing for civil servants. Special thanks to Marième Travaly, Aliou Maiga, Olivier Buyoya and Thierno-Habib Hann for the collaboration and to Karim Fawaz and Ali Saadi the developers of the first 2,000 units affordable housing project in Conakry in partnership with the IFC. Karim Fawaz a prominent businessman and real estate developer outlined the market potential for affordable housing in west Africa 'today the shortage of quality affordable housing in Guinea is huge and we intend to close that gap. We are extremely proud of our partnership with the IFC and strongly believe that the market is ready for such a large-scale project.' Karim Fawaz.
Today, "homeowners themselves build most of the housing stock. Foreign developers have expressed significant interest in entering the sector and some have signed agreements with various government entities including Turkish, South African and Chinese companies. There has been much talk but few projects have come to fruition. This is probably due to the foreign developers' low appetite for risk as the government cannot offer offtake guarantees and the size of the financeable demand is limited. Without interventions on the demand side, the interest of foreign developers may stop at the feasibility level. Despite these challenges, a few professional local and international developers are active in the market.
In addition, few households have access to formal banking services in Guinea. As of 2014, only 7 percent of Guinean adults were formally banked, and less than 1 percent had an outstanding mortgage. Banks rely on their deposits for financing mortgages, as long-term liquidity is scarce. a 'ratio de transformation'. According to local banks, prudential regulations in Guinea has set a 60% ratio between long term assets and long term liabilities, thus further limiting the capacity to use deposits for long-term finance" AHI
For more information, visit: http://housingfinanceafrica.org/app/uploads/Guinea-Housing-Investment-Landscapes-Final-October-2018.pdf
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